German court throws out 2 market manipulation suits vs Porsche SE

Article by Anita Panait, on September 20, 2012

A German regional court Braunschweig, northern Germany has dismissed two investor lawsuits against the Porsche SE, accusing it of market manipulation involving Volkswagen shares. Porsche SE welcomed the ruling as a “positive signal” and vowed to oppose the remaining lawsuits “with all rigor,” according to company spokesman Albrecht Bamler.

The investor suit is claiming EUR4.7 million ($6.14 million) of damages from Porsche SE for alleged market manipulation. Porsche SE is currently facing a number of suits in Germany and in the United States by hedge funds. German and US investors allege that Porsche SE concealed a move in 2008 to purchase Volkswagen and of secretly accumulating a majority stake in VW.

Porsche SE disclosed on Oct. 26, 2008, that it controlled 74.1 percent of VW, partly via options, and was looking forward to acquire 75 percent and then a takeover. Porsche’s announcement caused VW's stock to soar as short sellers raced to acquire shares, betting that VW would fall. Three remaining lawsuits, which are seeking EUR4.1 billion combined, are still pending at the German court.

Porsche SE incurred over EUR10 billion in debts in its botched attempt to take over VW, forcing it to dump its attempts and instead divest a 49.9 percent stake in Porsche AG to VW for EUR3.9 billion in December 2009. VW acquired the remaining 50.1 percent stake in Porsche AG, which it did not already possess, for nearly EUR4.5 billion ($5.8 billion).

If you liked the article, share on:

Topics: germany, porsche

Comments

Recommended

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries